With the festive season advancing, the demand for edible oils are increasing. However, as a surprise to households this festive season, the sunflower oil, groundnut oil, rice bran and palm oil prices have witnessed sharp increase whereas soyabean oil prices have remained steady from the past three months. Experts said that record import of soyabean oil and good supply has contained prices from rising from June in the wholesale market. Currently, edible oil prices are witnessing a sharp up-trend, driven by heavy festive demand and global supply chain disruptions due to US-Iran conflict and geopolitical unrest.

 

As of August 9, the wholesale prices across a variety of edible oils for a 15 kg tin have risen by approximately Rs 60 to Rs 80 per tin, as compared to the prices on June 8. Groundnut oil prices have jumped to around Rs 2,860-2,870 per 15 kg tin in the wholesale market, compared to Rs 2,780-2,790 on June 8. Experts have said that the price surge is not limited to groundnut oil, but other edible oils have also been impacted, like sunflower oil reaching Rs 2,620-30 per 15 litre tin, as compared to Rs 2,520-30 per 15 litre tin on June 9. “Similarly, the prices of palm oil are being quoted at Rs 2,500-Rs 2,510 per 15 kg tin, as compared to 2,460-70 per 15 kg tin on June 8.

 

Also, rice bran edible oil is being quoted at Rs 2,520-30 per 15 kg tin, as compared to 2,460-70 per 15 kg tin, as compared to Rs 2,460-70 per 15 kg tin on June 8. In retail, groundnut oil is selling at Rs 195 per litre pouch, rice bran at Rs 168 per litre pouch, sunflower oil at Rs 185 per litre pouch, and soyabean oil is available at Rs 165 per litre pouch, he said. Thakkar anticipates that in the coming days, the edible oil prices could increase by another Rs 50 per 15 kg tin. “India is dependent on international oil prices as imports constitute more than 60 per cent of the domestic consumption requirement in a year. India’s total domestic consumption is estimated at 2.10 lakh tonne to 2.15 lakh tonne per year. While domestic production is 90 lakh tonne to 95 lakh tonne, whereas imports are at 1.15 lakh tonne annually. Soyabean oil is imported in bulk quantities from Argentina and Brazil,” he further added.